Materion Corporation (NYSE: MTRN) and Global Brass and Copper Holdings (NYSE:BRSS) are both small-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitabiliy, risk, dividends, earnings and institutional ownership.
Risk & Volatility
Materion Corporation has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Global Brass and Copper Holdings has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.
Materion Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. Global Brass and Copper Holdings pays an annual dividend of $0.15 per share and has a dividend yield of 0.5%. Materion Corporation pays out 32.3% of its earnings in the form of a dividend. Global Brass and Copper Holdings pays out 8.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Materion Corporation has increased its dividend for 4 consecutive years. Materion Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current ratings and target prices for Materion Corporation and Global Brass and Copper Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Brass and Copper Holdings||0||1||0||0||2.00|
Materion Corporation currently has a consensus target price of $34.50, suggesting a potential downside of 11.65%. Given Materion Corporation’s higher possible upside, equities analysts plainly believe Materion Corporation is more favorable than Global Brass and Copper Holdings.
Valuation & Earnings
This table compares Materion Corporation and Global Brass and Copper Holdings’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Materion Corporation||$1.02 billion||0.77||$70.89 million||$1.24||31.49|
|Global Brass and Copper Holdings||$1.40 billion||0.51||$108.80 million||$1.69||19.20|
Global Brass and Copper Holdings has higher revenue and earnings than Materion Corporation. Global Brass and Copper Holdings is trading at a lower price-to-earnings ratio than Materion Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Materion Corporation and Global Brass and Copper Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Brass and Copper Holdings||2.64%||50.58%||8.18%|
Insider & Institutional Ownership
89.6% of Materion Corporation shares are held by institutional investors. Comparatively, 94.2% of Global Brass and Copper Holdings shares are held by institutional investors. 2.9% of Materion Corporation shares are held by company insiders. Comparatively, 2.8% of Global Brass and Copper Holdings shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Global Brass and Copper Holdings beats Materion Corporation on 8 of the 15 factors compared between the two stocks.
Materion Corporation Company Profile
Materion Corporation, through its subsidiaries, is an integrated producer of engineered materials used in a range of electrical, electronic, thermal, and structural applications. The Company operates in four segments: Performance Alloys and Composites, Advanced Materials, Precision Coatings, and Other. The Performance Alloys and Composites segment consists of businesses, such as Performance Metals and Technical Materials. The Advanced Materials segment produces chemicals, microelectronics packaging, precious metal, non-precious metal and specialty metal products. The Precision Coatings segment includes units, such as Precision Optics and Large Area Coatings. Its products include inorganic chemicals and powders, specialty coatings, specialty engineered beryllium and copper-based alloys, beryllium composites, ceramics and engineered clad, and plated metal systems.
Global Brass and Copper Holdings Company Profile
Global Brass and Copper Holdings, Inc. is a converter, fabricator, processor and distributor of specialized non-ferrous products, including a range of sheet, strip, foil, rod, tube and fabricated metal component products. The Company operates through three segments: Olin Brass, Chase Brass and A.J. Oster. Its Olin Brass segment is engaged in manufacturing, fabricating and converting specialized copper and brass sheet, strip, foil, tube and fabricated products. The Chase Brass segment is engaged in manufacturing brass rod, including round, hexagonal and other shapes. The A.J. Oster segment is engaged in processing and distributing copper and copper-alloy sheet, strip and foil, operating six service centers in the United States, Puerto Rico and Mexico. Its products are used in a range of applications across markets, including the building and housing, munitions, automotive, transportation, coinage, industrial machinery and equipment, and general consumer end markets.
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